JUPITER, Florida (March 14, 2011) — Last week, regulators closed one credit union: Land of Enchantment Federal Credit Union. This brings the total number of U.S. credit union failures to five for 2011, which is one ahead of last year’s pace.
Land of Enchantment Federal Credit Union, Santa Fe, New Mexico with assets of $9 million at September 30, 2010 was rated E+ (“Very Weak”) based on third quarter 2010 data by Weiss Ratings. The E+ rating was the first one issued by Weiss for this institution. The credit union reported a small profit of $35,000 through September 30, 2010. The Land of Enchantment had Risk-Based Capital ratio of 5% and total capital of $406,000. Nonperforming loans to core capital made up just over 29% of its loan portfolio. It has also had a charge-offs to loans ratio of 5.2%. Guadalupe Credit Union of Santa Fe, New Mexico, with assets of $103.2 million and a Weiss Rating of C- (“Fair”), will assume the deposits and liabilities of Land of Enchantment Federal Credit Union.
Weiss Ratings, the nation’s independent provider of bank, credit union and insurance company financial strength ratings, accepts no payments for its ratings from rated institutions. It also distributes independent investment ratings on the shares of thousands of publicly traded companies, mutual funds, closed-end funds and ETFs.
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